Inflation at highest rate since 2012

Inflation is at its highest rate since 2012, due to a rise in food and transport prices.

The Consumer Prices Index (CPI) measure of inflation increased to 3% in September 2017, up from 2.9% in August.

The September inflation figures are significant as they are used to set some rates for the next tax year.

The state pension

The 3% rise in CPI means the state pension will increase in line with inflation in April 2018. Under the ‘triple lock’ guarantee the state pension rises by the higher of inflation, average wage increases or 2.5%.

Business rates

The Retail Prices Index, which is used to determine the increase in business rates from April 2018, rose by 3.9%.